21shares announced it will distribute $0.010378 per share in Ethereum (ETH) staking rewards to holders of its TETH ETF.
The distribution follows Grayscale's groundbreaking staking payout earlier this week.
Payment scheduled for January 9 to shareholders of record as of January 8.
What Happened
21shares will distribute staking rewards earned from the trust's Ethereum holdings to TETH shareholders.
The FalconX subsidiary operates $34 million in assets under management with $25 million in net inflows since launch.
Grayscale distributed $0.083178 per share to its Ethereum ETF holders on January 6, marking the first U.S. spot crypto ETP to pass staking profits to investors.
21shares stakes a portion of its Ethereum holdings to generate rewards but faces operational and slashing risks.
The fund launched its first physically backed crypto ETP in 2018.
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Why It Matters
Ethereum staking distributions are becoming competitive differentiators among ETF providers.
REX-Osprey launched the first 1940 Act registered ETF with staking in September 2025.
BlackRock filed for a staked Ethereum ETF in December 2025 planning to stake 70-90% of holdings, pending regulatory approval.
The trend allows traditional investors to earn staking yields without directly managing cryptocurrency wallets or validator infrastructure.
Staking introduces additional risks including lock-up periods, network disruptions, and validator penalties that could reduce returns.
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